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NEC Establishes World-Class Grid Energy Solutions and Commercial Energy Systems Business, NEC Energy Solutions

NEC Corporation (NEC; TSE: 6701) announced today the completion of the acquisition of A123 Energy Solutions, the grid energy solutions and commercial energy systems business of A123 Systems, LLC., from China’s Wanxiang Group.

A123 Energy Solutions will now operate as NEC Energy Solutions, Inc. (NECES) and will capitalize on its world-class technologies and deployment record to build safe and reliable energy storage systems for leading utility companies and power producers throughout the world. As part of this acquisition, NECES and Wanxiang will create a joint venture to develop the grid energy storage and commercial systems business in China. Moreover, NEC will seek to expand new global business through the creation of next generation energy solutions linked to Information Communication Technologies (ICT) and energy storage systems.

NEC Energy Solutions will manufacture and continue the launch of Nanophosphate® ALM Series Lead Acid Replacement Batteries. These batteries deliver significantly lighter weight, higher power and longer calendar and cycle life as compared with lead acid for a number of applications, including telecommunications, data centers, medical and UPS systems.

Going forward, NEC Energy Solutions will help society realize a strong, stable, and sustainable energy infrastructure through the provision of intelligent energy solutions to enable greater usage of renewable energy from wind and solar, support aging grid infrastructure, and improve the operational efficiency of existing grid assets.

“We are very pleased about the establishment of NEC Energy Solutions, and with it the full-scale entry into the grid energy storage and industrial batteries marketplace. We will leverage the strengths of the NEC Group to enhance our offerings to support the renewable energy sector, the utility sector, the telecommunications sector, and others,” said Takemitsu Kunio, Senior Vice President of NEC Corporation. “By improving energy reliability, sustainability, and security with turn-key systems integration and best-in-class energy storage technologies, we will strive to be the leader in smart energy solutions.”

“We are excited to see the momentum building for the installation of grid storage around the world and for lithium batteries in commercial applications,” commented Hideki Niwaya, NECES Board Chairman and VP of NEC Smart Energy Business Unit. “The reaction from each company’s customers has been very favorable to this complementary combination.”

“With the completion of this acquisition, we are poised to grow and expand our portfolio of products and services that address the needs for intelligent energy solutions around the world,” said Bud Collins, CEO of NEC Energy Solutions.

Based on its Mid-term Management Plan 2015, the NEC Group is working towards the safety, security, efficiency and equality of society. NEC aims to develop solutions for a wide range of issues as a company that creates value through the promotion of its “Solutions for Society” which provide advanced social infrastructure utilizing ICT.

About NEC Energy Solutions

NEC Energy Solutions, headquartered in Westborough, Massachusetts, USA, develops and manufactures advanced batteries for electric grid, backup power and lead-acid replacement applications. As an industry leader in energy storage system integration focusing on high performance, efficient, safe and reliable battery systems, NEC Energy Solutions designs and manufactures advanced battery systems ranging from small industrial batteries to massive grid-scale energy storage systems. Its megawatt-scale Grid Storage Solutions have been successfully operated in commercial revenue service since 2009 around the world, and have to date reached over 110MW delivered. In commercial and specialty batteries, it provides energy storage solutions to fit the needs for telecom, IT backup, datacenter, medical, lead-acid replacement and other industrial applications. - See more at: www.neces.com

About NEC Corporation

NEC Corporation is a leader in the integration of IT and network technologies that benefit businesses and people around the world. By providing a combination of products and solutions that cross utilize the company’s experience and global resources, NEC’s advanced technologies meet the complex and ever-changing needs of its customers. NEC brings more than 100 years of expertise in technological innovation to empower people, businesses and society. For more information, visit NEC at: http://www.nec.com

NEC is a registered trademark of NEC Corporation. All Rights Reserved. Other product or service marks mentioned herein are the trademarks of their respective owners. ©2014 NEC Corporation.

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